Proposed Amendments (Related to Proposed National Instrument 81-106)

AMENDMENT TO

NATIONAL INSTRUMENT 81-102

MUTUAL FUNDS

PART 1 AMENDMENTS

1.1 Amendments

(1) National Instrument 81-102 Mutual Funds is amended by this Instrument.

(2) Section 1.1 is amended by

(a) the deletion of the definition of "significant change" and the substitution of the following:

" "significant change" has the meaning ascribed to that term in National Instrument 81-106 Investment Fund Continuous Disclosure;";

(b) the deletion of the definition of "report to securityholders" and the substitution of the following:

"" report to securityholders" means a report that includes annual or interim financial statements, or an annual or quarterly management report of fund performance, and that is delivered to securityholders of a mutual fund;";

(c) the addition of the following as Item 6 to paragraph (b) of the definition of "sales communication":

"6. Annual or quarterly management report of fund performance;"; and

(d) the deletion of the definition of "timely disclosure requirements".

(3) Section 5.6 is amended by the deletion of paragraph 5.6(1)(g) and the substitution of the following:

" (g) the mutual fund has complied with Part 11 of National Instrument 81-106 Investment Fund Continuous Disclosure in connection with the making of the decision to proceed with the transaction by the board of directors of the manager of the mutual fund or of the mutual fund;".

(4) Section 5.10 is deleted.

(5) Part 17 is deleted.

PART 2 EFFECTIVE DATE

2.1 Effective Date

This Instrument comes into force on the date that National Instrument 81-106 Investment Fund Continuous Disclosure comes into force.

AMENDMENT TO

COMPANION POLICY 81-102CP

MUTUAL FUNDS

PART 1 AMENDMENTS

1.1 Amendments

(1) Companion Policy 81-102CP is amended by this Amendment.

(2) Subsection 3.2(3) is amended by deleting the words "section 5.10 of the Instrument" in the last sentence of the subsection and substituting the words "Part 11 of National Instrument 81-106 Investment Fund Continuous Disclosure".

(3) Subsection 7.3(2) is amended by deleting the words "paragraph 5.1(g) and section 5.10 of the Instrument" in the last sentence of the subsection and substituting the words "paragraph 5.1(g) of the Instrument and Part 11 of National Instrument 81-106 Investment Fund Continuous Disclosure".

(4) Section 7.4 is deleted.

(5) Sections 14.2, 14.3, 14.4 and 14.5 are deleted.

PART 2 EFFECTIVE DATE

2.1 Effective Date

This Amendment comes into force on the date that National Instrument 81-106 Investment Fund Continuous Disclosure comes into force.